Uh Oh... I'm in waaaay over my head

[squirrelgirl]

I'm in waaaay over my head. We've got issues... DH makes $17/hr, I make $18. Pre-tax, we pay just under $800/mth in health insurance. Neither of us has the option of 401K at work, but I do have a pension plan. Post tax, DH brings home around $425/wk. I get paid twice monthly and bring home around $2300, depending on how many hours are in the pay period. So we actually bring home around 4K/mth

 

Now for the scary part... Monthly Bills:

 

Mortgage/Property Taxes/Insurance - $1341

Home Equity Loan - $194

Car #1 - $445

Car #2 - $261

Car Insurance - $141

Student Loans - $70

Day Care - $260

Phone/Cell/Internet - $100

Cable - $40

Water - $35

Electric - $125

Trash - $15

 

Now for Credit Cards (CL/Balance/Interest Rate/Min Payment)

Home Depot - $4500/$300/0% until May/I haven't paid anything on the original $650 balance in like 3 months

Furniture - $4500/$1025/0% until July & 0% until December - I think I still have to pay it off before July, even though there were two different purchases at 0%/Pay $50-$75 a month

Citi MC - $10400/$9300/0% until 11/1/06/Min is about $150

Juniper MC - Balance is around $1900 - I always pay this off in full every month-but this is a huge balance this month, lots of unexpected expenses...

 

I also contribute $100 month ($50 for me, $50 for DH) into a T. Rowe Roth IRA's. Up until this week, I had been sending $100/month to an ING account. We each have about $400 in our Roth's, and our ING account has about $3075 in it.

 

Prior to last summer, we had NOTHING saved. We used all our savings to buy our house 3 years ago, and never built up our savings. I was unemployed for 6 weeks in 2004 and used the credit cards - hence the huge amount on the BT Citi card. New baby a few months ago - took 7 weeks off (waaah!) and only 2 weeks of it was paid. Had to trade in my car - *it was almost paid off - because the fire dept said it was unsafe with the carseat - Hence car payment #1.

 

DH's truck is on the last limbs of life, had to get ANOTHER new car a few weeks ago - hence car payment #2. Part of the immediate problem - couldn't use the truck as a trade in, we have listed it for sale, but NO buyers. Very little interest for 2WD vehicles in CO (we had bought it when we lived in TX - own it free and clear).

 

What to do?!?! Our house payment should go down about $60 in May (our payment went up last year because our escrow account got screwed up). We still have about 3 years on the equity loan. Student loans balance at about 5K.

 

Adding up just the basic numbers in relation to our income - we just don't make enough to make a dent in all this. One option would be for one of us to get a second job... we really don't want to go this route as we hardly see our infant daughter. By the time we get home at night after work, it is already after 5, and she typically goes to bed at 7:30. We both work about 30 minutes from home - not on bus routes, so gas is costing us around $300/mth, sometimes more.

 

We sell a little bit on eBay to supplement income - have been doing so for years, we maybe make $100-$200 a month doing that.

 

I would not be opposed to selling our house, but I don't even think we can get what we paid for it, as with our equity loan added in, we owe just under what we bought it for and our RE market is stagnant. We're kind of stuck with the cars...

 

I suppose we could cut out the cable, but it is really our only luxury. We're home all night, and almost all weekends. We don't eat out and spend very little at the grocery store.

 

The cost of health care is KILLING us. We have to have it, but $800/mth??! It's ridiculous! The only insurance we have available to us is an HMO, combined with dental & vision. We can't drop part of the coverage or change to high deductible...

 

What to do?!? I'm sooo stressed out over this.

[Clarkfan2]

I can feel the stress from your post. I don't know what I can say other than you will make it some how some way. I don't understand why you can't change to a different medical insurance company with the high deductable. You seem to have disputed the main ideas that are first line of defense in your situation.

 

A second job would only be temporary. You see the problem but time is of the essence...it's either bring in more income , start selling off stuff or a combination of the two. The main thing is that you want to sell stuff if it gets desperate and not an actioneer from a repo company.

 

I would say cut the cable, internet and cell phones but you really need to disect something a little bigger than that....like one of the cars. I would immediately STOP ALLS SAVINGS and applying it towards bills/debt. You have savings that will knock out 2 plus put a 1400 dollar dent in Juniper.

 

 

Even if you continue saving $200 per month....which at this time I would advise against...that still leaves $800.00 per month. Surely in 3 months you could be down to no cc's but the biggie with CITI by then.

[squirrelgirl]

Clark,

 

Insurance is through DH's work. That is the only plan available. We have some health issues, so personal insurance would actually cost more...

 

I could cut the cells, but we are in a contract, termination fee is pretty hefty. Guess I'll have to say g-bye to the cable

 

Maybe DH can deliver papers in the morning... we both have to be at work really early anyway. We just really don't want to work at night or on the weekends - it's the only time we see our daughter!

 

Thanks.

[radi8]

After adding up your expenses and subtracting that from your income, I see why you are feeling stressed. Your expenses are within $200 of your income, and that doesn't include food or other necessities.

 

That $700 in car payments is killing you. Any way to downsize either vehicle?

 

If your employment is stable, I'd consider using most of your savings to start wiping out the furniture loans, etc. That will free up those payments to use towards another debt... and so on.

Once those 0% offers expire, things are only going to get tighter.

 

Keep $1K or so in savings for an EF, so you won't have to rely on a credit card if you come up short. Perhaps apply the rest judiciously to remove as many other monthly payments as you can.

 

Is there a "basic" cable package available? Some providers have those for under $20.

[miked0801]

Is your Tax Return gonna help you out much this year? The child care expenses can be paid pre-tax and the kid should really lower your tax hit. Perhaps increase your exemptions on your W2s to increase your income a bit?

 

Beyond that, you need to get rid of those car payments. They are eating you alive.

[Clarkfan2]

On the cell phones, you might try calling the 1-800 number for the company and tell them your situation and see if they will (1) let you out of your contract if you give them the phones back. Sometimes, companies will do it although it is rarely advertised or talked about.(2) Also look at the long term costs...say $75 per month vs. $400 for paying the disconnect penalty. Even though the $400.00 seems high, you still might recoup the $$$$ equivalents of several months of service in the long run. You would also have possession of the phones which might can be sold to counter balance the heavy disconnect fee.

 

 

Again disecting a car payment especially car#1 could really help you turn this around in a hurry.

[radi8]

On the cell phones, you might try calling the 1-800 number for the company and tell them your situation and see if they will (1) let you out of your contract if you give them the phones back.

 

 

Another thought might be getting rid of the landline and keeping the cell. Depending on usage, a cell can sometimes be the less expensive of the two.

[ms_lisa]

I would do something about the vehicles if possible. That alot of money on car payments.

 

Do you have a land line & cell phones? you may want to decide on having one or the other. I only use my cell, no land line.

 

Your bills dont really seem to high to me, I think the health insurance and vehicle loan payments are the biggest issues (and you obviously need the health insurance)

[radi8]

Are you getting a big tax refund? If so, you might have your withholding adjusted so that more of that money comes home in the paychecks.

 

Perhaps there will be more interest in the truck once the snow clears?

[radi8]

Just noticed you don't have heating expenses listed. Is that a separate item?

[miked0801]

Are you getting a big tax refund? If so, you might have your withholding adjusted so that more of that money comes home in the paychecks.

 

Perhaps there will be more interest in the truck once the snow clears?

 

Copy Cat

[Uncle Leo]

Is there a "basic" cable package available? Some providers have those for under $20.

 

I just saw an ad in today's yesterday's paper that Dish Network is now offering a "family package" for $20/mo, and they specifically point out that it is NOT just an introductory rate. The choices will be limited, of course, but it's something.

[CargoJon]

Are you or DH in a line of work that would allow you to hunt the job market for a job that would offer better insurance benefits? I know you each make a good hourly wage, howver if you work (rounded) 160 hours per month, and the health insurance was $400/month vs. $800/month, you could make $1 / less an hour and still come out way ahead.

[angeleyeskkhr]

Just noticed you don't have heating expenses listed. Is that a separate item?

 

 

She said $125/mo for electric

[CargoJon]

Just noticed you don't have heating expenses listed. Is that a separate item?

 

 

She said $125/mo for electric

 

Wish it cost me $125 a month for heat. My electric is $50/month and my last two monthly gas bills were $305 and $257

 

Hint - keep the electric heat

Edited February 28, 2006 by CargoJon

[radi8]

Are you getting a big tax refund? If so, you might have your withholding adjusted so that more of that money comes home in the paychecks.

 

Perhaps there will be more interest in the truck once the snow clears?

 

Copy Cat

 

 

:: busted

 

 

 

 

Hey, good ideas bear repeating, lol.

[radi8]

. My electric is $50/month

 

 

 

Do you live in an shed? Err.... got room?

 

Mine, just in the mail Friday, was down to $275.00. Down to is the operative phrase here. Was higher the month before.

And that does NOT include heat. Electricity only.

[GEORGE]

 

. My electric is $50/month

 

 

 

Do you live in an shed? Err.... got room?

 

Mine, just in the mail Friday, was down to $275.00. Down to is the operative phrase here. Was higher the month before.

And that does NOT include heat. Electricity only.

MY ELECTRIC IS UNDER $100.00

 

(heat is GAS)

Edited February 28, 2006 by GEORGE

[TJ Girl]

Wow, maybe I live in a shed...

I budget $30 for my electric, and this month (as most) I have about $6 left over. Bill was $23. Some months I'm as low as $18. Highest I've paid in the last 2.5 years is $28.

 

That does not include heat, obviously.

 

I guess I just live simply.

Always using power: refrigerator, answering machine, 1 clock

Power when I'm home: light for the room I'm in, computer (usually laptop sometimes desktop)

Occasional power: microwave a couple times/month. Electric lawnmower about once/week in the summer.

That's about it.

 

ETA: Oh yeah, in occasional power add washer, dryer, dishwasher roughly once/week each

Edited February 28, 2006 by TJ Girl

[squirrelgirl]

Electric bill is for gas too. My house is maybe 1600 sq ft and I keep it at 58 degrees during the day, 62 when I'm home. The electric went up a TON this winter. 125 is actually a pretty conservative guess.

 

We don't have a land line phone - that is two cells and internet only.

 

We already got our tax refund - it was 1600 fed and 180 state. We are using that to pay the mastercard bill.

 

I changed my withholding from 0 to 1 last month. This was the first year we got a refund. Don't want to change withholdings too much because we don't want to owe again next year.

 

Cable - the suggestion on dish network. they charge per tv, plus installation. Base rate once its fixed after a promo rate is more expensive than regular cable. But I would love to have it - the reception is MUCH better than what we currently have. Oh, and as for just "basic" cable - it wouldn't even be worth paying for. It's only like 3 channels more than rabbit ears. I wish I could just pay a few bucks a month for the 5 cable channels I actually watch.

 

Had an offer on the truck, but it's 2300 less than we're asking... can't afford to take that little of an amount. We can afford to hold onto it for about another 10 days, or else we'll have to start paying insurance on it again...

 

DH is a plumber - he can probably get another job. He's looked around, but this is a hard time of year to gain employment in that field. It is a slow time of year, what with the frozen ground. He is a foreman at his current job - hasn't gotten a raise in almost 2 years, and they cut out bonuses last year without any notification. He's been there for 4 years. He is pretty unhappy there and would love to get a new job, but there just aren't any openings.

 

And me... I just do administrative crap that any person with any computer skills could do. I couldn't make any more than what I'm making unless I was able to find an executive position somewhere.

 

Really I'm just freaking out. I'm sure it will all work out, it always does.

[TJ Girl]

And me... I just do administrative crap that any person with any computer skills could do. I couldn't make any more than what I'm making unless I was able to find an executive position somewhere.

There are probably others here who know more than I do about it, but might you be able to do some work-at-home sort of administrative stuff? That way you could make a little extra, but still be home.

I know I've seen things like data entry and whatnot.

 

Hopefully someone else could give a better idea what's available, though.

[NineCount]

I'm in waaaay over my head. We've got issues... DH makes $17/hr, I make $18. Pre-tax, we pay just under $800/mth in health insurance. Neither of us has the option of 401K at work, but I do have a pension plan. Post tax, DH brings home around $425/wk. I get paid twice monthly and bring home around $2300, depending on how many hours are in the pay period. So we actually bring home around 4K/mth

 

Now for the scary part... Monthly Bills:

 

Mortgage/Property Taxes/Insurance - $1341

Home Equity Loan - $194

Car #1 - $445

Car #2 - $261

Car Insurance - $141

Student Loans - $70

Day Care - $260

Phone/Cell/Internet - $100

Cable - $40

Water - $35

Electric - $125

Trash - $15

 

Now for Credit Cards (CL/Balance/Interest Rate/Min Payment)

Home Depot - $4500/$300/0% until May/I haven't paid anything on the original $650 balance in like 3 months

Furniture - $4500/$1025/0% until July & 0% until December - I think I still have to pay it off before July, even though there were two different purchases at 0%/Pay $50-$75 a month

Citi MC - $10400/$9300/0% until 11/1/06/Min is about $150

Juniper MC - Balance is around $1900 - I always pay this off in full every month-but this is a huge balance this month, lots of unexpected expenses...

 

I also contribute $100 month ($50 for me, $50 for DH) into a T. Rowe Roth IRA's. Up until this week, I had been sending $100/month to an ING account. We each have about $400 in our Roth's, and our ING account has about $3075 in it.

 

Prior to last summer, we had NOTHING saved. We used all our savings to buy our house 3 years ago, and never built up our savings. I was unemployed for 6 weeks in 2004 and used the credit cards - hence the huge amount on the BT Citi card. New baby a few months ago - took 7 weeks off (waaah!) and only 2 weeks of it was paid. Had to trade in my car - *it was almost paid off - because the fire dept said it was unsafe with the carseat - Hence car payment #1.

 

DH's truck is on the last limbs of life, had to get ANOTHER new car a few weeks ago - hence car payment #2. Part of the immediate problem - couldn't use the truck as a trade in, we have listed it for sale, but NO buyers. Very little interest for 2WD vehicles in CO (we had bought it when we lived in TX - own it free and clear).

 

What to do?!?! Our house payment should go down about $60 in May (our payment went up last year because our escrow account got screwed up). We still have about 3 years on the equity loan. Student loans balance at about 5K.

 

Adding up just the basic numbers in relation to our income - we just don't make enough to make a dent in all this. One option would be for one of us to get a second job... we really don't want to go this route as we hardly see our infant daughter. By the time we get home at night after work, it is already after 5, and she typically goes to bed at 7:30. We both work about 30 minutes from home - not on bus routes, so gas is costing us around $300/mth, sometimes more.

 

We sell a little bit on eBay to supplement income - have been doing so for years, we maybe make $100-$200 a month doing that.

 

I would not be opposed to selling our house, but I don't even think we can get what we paid for it, as with our equity loan added in, we owe just under what we bought it for and our RE market is stagnant. We're kind of stuck with the cars...

 

I suppose we could cut out the cable, but it is really our only luxury. We're home all night, and almost all weekends. We don't eat out and spend very little at the grocery store.

 

The cost of health care is KILLING us. We have to have it, but $800/mth??! It's ridiculous! The only insurance we have available to us is an HMO, combined with dental & vision. We can't drop part of the coverage or change to high deductible...

 

What to do?!? I'm sooo stressed out over this.

 

 

You've been in your house for 3 years.... Have you considered talking to a mortgage broker and ask about a cash-out refi? (then pay-off some of those bills?) I'm not sure what your current rate and term of your loan is, but it's something to think about. Especially with 3 years of appreciation in your home. If anything maybe you could just refi and get a lower rate and reduce your monthy mortgage payment? It sounds like you don't have much left on the equity loan, so I'm betting you have some room to work with if you refi.

 

Something to think about....

 

-NineCount

Edited February 28, 2006 by NineCount

[Clarkfan2]

Never swap unsecured debt with secured debt!!! especially when you have over 3k in savings. Earn guaranteed interest on your savings by paying off your debt first!

[squirrelgirl]

I'm in waaaay over my head. We've got issues... DH makes $17/hr, I make $18. Pre-tax, we pay just under $800/mth in health insurance. Neither of us has the option of 401K at work, but I do have a pension plan. Post tax, DH brings home around $425/wk. I get paid twice monthly and bring home around $2300, depending on how many hours are in the pay period. So we actually bring home around 4K/mth

 

Now for the scary part... Monthly Bills:

 

Mortgage/Property Taxes/Insurance - $1341

Home Equity Loan - $194

Car #1 - $445

Car #2 - $261

Car Insurance - $141

Student Loans - $70

Day Care - $260

Phone/Cell/Internet - $100

Cable - $40

Water - $35

Electric - $125

Trash - $15

 

Now for Credit Cards (CL/Balance/Interest Rate/Min Payment)

Home Depot - $4500/$300/0% until May/I haven't paid anything on the original $650 balance in like 3 months

Furniture - $4500/$1025/0% until July & 0% until December - I think I still have to pay it off before July, even though there were two different purchases at 0%/Pay $50-$75 a month

Citi MC - $10400/$9300/0% until 11/1/06/Min is about $150

Juniper MC - Balance is around $1900 - I always pay this off in full every month-but this is a huge balance this month, lots of unexpected expenses...

 

I also contribute $100 month ($50 for me, $50 for DH) into a T. Rowe Roth IRA's. Up until this week, I had been sending $100/month to an ING account. We each have about $400 in our Roth's, and our ING account has about $3075 in it.

 

Prior to last summer, we had NOTHING saved. We used all our savings to buy our house 3 years ago, and never built up our savings. I was unemployed for 6 weeks in 2004 and used the credit cards - hence the huge amount on the BT Citi card. New baby a few months ago - took 7 weeks off (waaah!) and only 2 weeks of it was paid. Had to trade in my car - *it was almost paid off - because the fire dept said it was unsafe with the carseat - Hence car payment #1.

 

DH's truck is on the last limbs of life, had to get ANOTHER new car a few weeks ago - hence car payment #2. Part of the immediate problem - couldn't use the truck as a trade in, we have listed it for sale, but NO buyers. Very little interest for 2WD vehicles in CO (we had bought it when we lived in TX - own it free and clear).

 

What to do?!?! Our house payment should go down about $60 in May (our payment went up last year because our escrow account got screwed up). We still have about 3 years on the equity loan. Student loans balance at about 5K.

 

Adding up just the basic numbers in relation to our income - we just don't make enough to make a dent in all this. One option would be for one of us to get a second job... we really don't want to go this route as we hardly see our infant daughter. By the time we get home at night after work, it is already after 5, and she typically goes to bed at 7:30. We both work about 30 minutes from home - not on bus routes, so gas is costing us around $300/mth, sometimes more.

 

We sell a little bit on eBay to supplement income - have been doing so for years, we maybe make $100-$200 a month doing that.

 

I would not be opposed to selling our house, but I don't even think we can get what we paid for it, as with our equity loan added in, we owe just under what we bought it for and our RE market is stagnant. We're kind of stuck with the cars...

 

I suppose we could cut out the cable, but it is really our only luxury. We're home all night, and almost all weekends. We don't eat out and spend very little at the grocery store.

 

The cost of health care is KILLING us. We have to have it, but $800/mth??! It's ridiculous! The only insurance we have available to us is an HMO, combined with dental & vision. We can't drop part of the coverage or change to high deductible...

 

What to do?!? I'm sooo stressed out over this.

 

 

You've been in your house for 3 years.... Have you considered talking to a mortgage broker and ask about a cash-out refi? (then pay-off some of those bills?) I'm not sure what your current rate and term of your loan is, but it's something to think about. Especially with 3 years of appreciation in your home. If anything maybe you could just refi and get a lower rate and reduce your monthy mortgage payment? It sounds like you don't have much left on the equity loan, so I'm betting you have some room to work with if you refi.

 

Something to think about....

 

-NineCount

 

Yes, we have been in our house 3 years. We can't do a refinance because we have NO equity. Purchase price was 192K. Our current balance is 184K, plus the 7K or so on the HEL. The assessed value of our house has remained the same for the 3 years we've been in our house. Refinancing would be out of pocket expense for closing costs, blah blah blah, PLUS we would have to pay PMI. It wouldn't save us any money at all... I wish it would.

[angeleyeskkhr]

Just noticed you don't have heating expenses listed. Is that a separate item?

 

 

She said $125/mo for electric

 

Wish it cost me $125 a month for heat. My electric is $50/month and my last two monthly gas bills were $305 and $257

 

Hint - keep the electric heat

 

 

I just got my bill for electric. Just under $75, with the heater running for I think 4-7 days during that period (at 70 degrees) I'm not complainin'